Sentences with phrase «several uncorrelated assets»

At the heart of Modern Portfolio Theory is the understanding that in order for a portfolio to be truly diversified, its investments must be allocated across several uncorrelated assets.

However, within a given portfolio, an investor can maximize return for a given level of risk by diversifying among several uncorrelated asset classes.

Not exact matches

That higher return has come with higher volatility, but by combining several different asset classes that are at least somewhat uncorrelated, or better yet negatively correlated, a higher return per unit of risk is possible.